Page last updated at 23:47 GMT, Tuesday, 27 January 2009

Yahoo makes a loss as sales slip

Yahoo sign, AP
Yahoo has appointed a new chief executive to help revive its fortunes.

Yahoo has reported a loss in the final three months of 2008 as the economic downturn hit sales of online ads.

Its figures showed a loss of $303.4m (£215m) compared with a profit of $205.7m a year earlier.

But analysts said the company had weathered the downturn better than expected, with the loss mainly due to one-off costs.

The results come as Carol Bartz takes over from Jerry Yang as the firm's new chief executive.

Mr Yang stepped down following his rejection of a $47.5bn takeover offer from Microsoft last year, which rankled the company's shareholders.

"The company made important investments while aggressively managing costs, leaving us better positioned to weather the economic downturn and emerge stronger when advertiser spending improves," said Ms Bartz.

YAHOO FACTS
Carol Bartz
Founded in 1995, is based in Sunnyvale, California,
Is the world's second most popular internet search engine - but trails far behind market leader Google
Currently employs about 15,000 staff

However, she gave a cautious outlook for the beginning of 2009. The company said its first-quarter revenue will range from $1.53bn to $1.73bn, a decline from $1.82bn at the same time last year.

Revenue fell 1% to $1.806bn.

Analysts said the fourth-quarter results were not too big a setback for the firm as the loss stemmed from one-off charges to cover the cost of laying off 1,500 employees and to account for bad investments.

However, close rival Google saw revenue rise by 18% in the same period.

"To a certain extent, [the fourth quarter] was not as bad as some of the dire cases we were talking about," said Martin Pyykkonen, an analyst at Wunderlich Securities.

For 2008 as a whole, Yahoo made a net profit of $424m compared with $660m in 2007.

The company's shares rose in after-hours trading.



Print Sponsor


SEE ALSO
Yahoo names new chief executive
13 Jan 09 |  Business
Microsoft ends Yahoo buyout talks
20 Nov 08 |  Business
Google abandons deal with Yahoo
05 Nov 08 |  Business
Profiles: Yahoo, Google and Microsoft
29 Jul 09 |  Business
Yahoo to cut 10% of its workforce
21 Oct 08 |  Business
Google shrugs off slowing economy
16 Oct 08 |  Business
Yahoo defends Google advert deal
12 Sep 08 |  Technology

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific